Optical Cable Corporation (OCC)

News Summary:

Optical Cable Corporation (OCC) filed an 8-K statement on September 10, 2026, announcing its third-quarter fiscal year 2026 financial results and an accompanying earnings call, both held the previous day. On September 9, OCC reported net sales climbing 22% year-over-year to $24.3 million for the third quarter, with diluted earnings per share reaching $0.21, up from $0.04 a year earlier. Net income surged to $1.9 million, compared to $302,000 in the prior year's period. The company also saw its gross profit increase 43.9% to $9.1 million, expanding the gross margin to 37.4% from 31.7%, largely due to higher production volumes improving manufacturing operating leverage. Management attributed the strong performance to high demand across enterprise and data center markets, despite managing industry-wide challenges like optical fiber shortages and extended raw material lead times. OCC indicated a robust backlog and forward load of $13.5 million and expects the second half of fiscal 2026 to remain strong, with President and CEO Neil Wilkin expressing optimism for continued top-line growth into fiscal 2027. The company is increasing staffing and equipment at several facilities, supported by sufficient working capital and credit revolver availability. Although the stock fell 4.6% in premarket trading following the results, OCC noted early sales of Lightera products through a strategic collaboration.